Trade (Australia and New Zealand) Bill (First sitting)

Debate between Drew Hendry and Nia Griffith

Committee stage
Wednesday 12th October 2022 Public Bill Committees

[Drew Hendry]

Q I have one final question on that subject. You said you have had extensive engagement. Do you think it is right that it has come to this stage without the parliamentary scrutiny I have mentioned?

Lucy Monks: I think the process issue is one for you to take up with your colleagues. It is obviously critical because this is new and, as I said, there has to be a feedback process. However, the way in which you and your colleagues across Government and Parliament interact is one for you, I think.

[Dame Nia Griffith (Llanelli) (Lab)]

Q In the past, there has been criticism from some in your organisation that there was no SME chapter in the treaties. Do you feel that the Bill provides sufficient protections and the mechanisms that you would wish to see to give that ongoing support to small businesses?

Lucy Monks: Yes. There are SME chapters in the Australia and New Zealand agreements. If we had a concern with the Bill and the issue around procurement, it would be that, as I said, small businesses tend to be cut out of the procurement process even in our own country, so both the FTA and anything that impacts procurement legislation need to be done in a way that supports small businesses. I am not as concerned about competition from Australian and New Zealand small businesses as I am about the ability for larger businesses to take opportunities that could be sitting there for smaller businesses.

Separate from that, for a long time there was a conversation between various Government Departments about trying to improve the central Government procurement system, not only for small businesses, but generally in its ability to encourage greater social value through public spending, basically. A couple of years ago, the Government finally published a social value model, part of which is supposed to be about encouraging engagement of small businesses both in the direct procurement system and as part of that supply chain. Obviously, larger businesses can go and bid for contracts, but they kind of have to promise that they will engage with x, y, z number of small businesses in delivering bits and pieces.

The Government have promised to keep monitoring how that model is implemented. I would ask that we keep monitoring how these measures are implemented in terms of both the ability for small businesses to actually access those procurement markets in Australia and New Zealand, and the impact of larger businesses that are going forward and trying to procure those projects and their ability to bring along UK small businesses as part of the process.